Npower To Push Energy Prices Up By 9.8%

Big Six energy company Npower is set to give its customers a bit of a shock come March by hiking its energy prices up by 9.8 per cent – which will see £109 a year added to the average dual fuel bill. The cost of electricity is to climb by 15 per cent and gas prices by 5.8 per cent from March 16th onwards.

Customers on a standard variable tariff can protect their bills using the price fix March 2021 tariff, which will see prices fixed until March 31st 2012. You also won’t be affected by the price increase if you have a prepayment meter, if you’re on one of the company’s fixed tariffs or if you’re helped by the Macmillan Fund (Fuel Management Programme).

The energy provider has justified the increase by saying this is the first time a hike has been seen since 2013. Over the last couple of years, the costs associated with supplying domestic energy has increased, as has the amount that Npower is required to pay towards government schemes.

Commenting on the development, Ben Wilson of Gocompare.com Energy said: “What we know from previous price hikes is that where one energy giant leads, others surely follow. EDF has already said it is putting up electricity prices by 8.4 PER CENT from March, so with Npower now joining in, all energy customers should now be on red alert to ditch their standard tariffs and switch to a better deal.”

Peter Earl from Comparethemarket.com, meanwhile, added that this price hike is even more evidence that the UK’s energy market is broken. Meaningful savings have not been passed on to consumers by major energy companies, despite the fact that wholesale prices have dived. Now that they’re on the rise again, customers are likely to see their energy bills increase.